Page 33 - Insurance Times April 2021

INSURERS'

PERSPECTIVE TO

LEGISLATIVE

CHANGES IN

MOTOR

E co-system is evolving at a fast pace in motor line under Section 166 of the MV Act. When the question of

of business. Regulator brought in many changes
future prospect was settled in Sarla Verma and Pranay Sethi
& other cases for salaried persons as well as those who were
related to mandatory long-term liability insurance
to three years for private cars and five years for
two-wheelers at the point of sale and registration, enhanced self-employed or were having fixed incomes, the challenge
was made with regard to loss of consortium to be awarded
capital sum insured in compulsory personal accident cover to children and parents in addition to wife and to claim for
on one hand and setting up working groups to adopt loss of love and affection in addition to three conventional
telematics for motor insurance and linking premium to traffic heads laid down in case of Pranay Sethi. The just
violations on the other hand. compensation can never be in arithmetical exactitude but
nevertheless, such standardization simplifies the otherwise
In view of imponderables & uncertainties and significant complex exercise of assessing loss of dependency and help
divergence among Tribunals in determining 'Just in making realistic appropriate technical reserves.
Compensation' on similar facts, the Apex Court has
constantly endeavoured to standardize the determinants of The most important change from the perspective of insurers
'Loss of dependency' to bring uniformity and consistency in in the recent past was the notification of Motor Vehicle
the decisions to determine compensation in a claim made (Amendment) Act, 2019 by the Central Government, and it
came into effect on 1st of September 2019. The
About the author Amendment, apart from hefty penalties for traffic violations,
new licencing requirements & new operating standards also
Vinay Verma brings drastic changes to third party liabilities and its claim
Dy General Manager process.
Oriental Insurance Company Limited.
Honorary Member of FICCI and CII Enhanced penalties resulted in boom in business of the
Health Insurance Forum. insurers in months after the implementation of these

The Insurance Times, April 2021 33